GRC Trends & Insights for 2026

Why 2026 Will Be a Turning Point for GRC

Several converging dynamics are driving GRC into a new era. On the regulatory side, EU frameworks such as the Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD), NIS2, and DORA are maturing and creating more stringent requirements around transparency, information security, and business continuity.

At the same time, companies face heightened stakeholder expectations. Investors, employees, and consumers alike are demanding greater accountability and assurance that organizations are not only compliant, but also resilient, ethical, and sustainable.

The market reflects this momentum:

‘Valued at 12.45 billion USD in 2024, the Governance, Risk & Compliance Software Market is projected to expand at a CAGR of 9.25% from 2026 to 2033, reaching 26.78 billion USD by 2033.’

This is not simply growth for growth’s sake. It signals a shift from compliance being treated as a cost of doing business to compliance being understood as a strategic driver of trust and performance.

Top 5 GRC Trends to Watch in 2026

1. Stronger Focus on Internal Controls & Risk-Centric Management

For some time now, we’ve been witnessing a significant expansion of regulatory frameworks across industries and regions. To keep pace and ensure compliance with these evolving requirements, businesses must establish robust internal controls. These controls are no longer perceived as a mere back-office function, but as an integral part of organizational governance and strategy. Increasingly, companies are required to demonstrate not only that controls are in place, but also that they are transparent, auditable, and effective in ensuring that risks are properly managed and regulatory obligations are consistently met.

In 2026, a risk-centric approach will clearly take center stage. For internal controls, this means moving beyond box-ticking exercises and designing them around the organization’s unique risk profile and appetite. Equally important is ensuring that these controls are connected to performance metrics, so that compliance is directly tied to measurable business outcomes.

In this context, it can be observed how smart automation is reshaping the way internal controls are tested and maintained throughout their lifecycle. Instead of relying on periodic manual audits, automated workflows enable continuous monitoring of compliance and can flag deviations in real time. At the same time, advances in predictive simulation are expected to empower companies to proactively test their control frameworks against hypothetical risk scenarios, thereby strengthening their long-term resilience.

2. The Rise of Niche Segments such as ESG Management & Supply Chain Resilience

Environmental, social, and governance (ESG) factors are gaining importance not only due to regulatory requirements such as the CSRD, but also as major drivers of corporate strategy. New mandatory reporting obligations aside, the management of ESG aspects has become a decisive factor shaping how organizations position themselves in the long term. By 2026, most large enterprises will be required to demonstrate how they are embedding ESG not just into their risk management, but also into their governance structures and overall strategic orientation.

One area where this shift is particularly evident is supply chain management. Geopolitical tensions, climate-related disruptions, and the trend toward deglobalization, driven by the resurgence of protectionist policies among major economic powers, are compelling companies to rethink existing supply chains – especially those that span across borders or have global reach. As a result, many organizations are already pivoting toward regional or local sourcing strategies to reduce dependency on fragile international networks.

For organizations and for those responsible for strategic and operational GRC tasks, this shift has two major implications:

1. Business continuity planning must now take into account a far wider spectrum of risks, ranging from natural events such as extreme weather to human-driven incidents such as cyberattacks on suppliers.
2. ESG compliance is increasingly a supply chain concern, with organizations held accountable not only for their own practices but also for those of their vendors and partners.

All of this points to the trend that GRC segments once considered niche (e.g., ESG risk modules or supply chain resilience) are rapidly moving into the mainstream. Smart GRC platforms that allow to seamlessly integrate ESG data and continuity planning within a broader risk management framework will be critical to navigating these new complexities.

3. Cybersecurity & Vendor Risk Management as New Core Areas

Cybersecurity has long been a board-level and leadership concern, but by 2026 it will be inseparable from governance as well as risk and information security management. Unfortunately, cyber threats are escalating in both frequency and sophistication, and attackers have found that targeting supply chains and third-party providers offers them a relatively easier way to exploit vulnerabilities and introduce their malware into the networks of large enterprises, allowing them to infiltrate systems and corrupt or steal valuable information.

This means that organizations are naturally required to strengthen their vendor risk management by implementing rigorous processes to evaluate, monitor, and mitigate risks associated with external partners. Automated monitoring systems, real-time threat detection, and integrated incident reporting are quickly becoming baseline expectations, particularly for companies in critical sectors, a development further reinforced by international regulations such as NIS 2.

In practical terms, cybersecurity is set to become an integral part of every moving part within large-scale GRC frameworks. Risk management in all its dimensions, including areas such as Internal controls, business continuity planning, vendor management, and more, must henceforth embed cyber resilience as a core principle.

Software that allows for the seamless integration of cyber risks into the overall GRC framework will help organizations treat cybersecurity as a governance issue rather than an isolated IT concern, helping them to better protect not only sensitive company information and customer data, but also stakeholder trust in the long term.

4. Integration & Automation as the Cornerstones of Future GRC

Already today, organizations with siloed governance, risk, and compliance processes, where information doesn’t flow freely between teams and departments, often find themselves hitting a dead end. This challenge will only intensify in the near future as risks become increasingly interconnected and individual risk areas converge. Redundant tasks, unclear risk ownership as well as inconsistent assessment methods and outcomes are the predictable consequences of this development.

As a result, management platforms offering integrated solutions that span the full spectrum of governance, risk, and compliance are gaining traction, particularly among companies operating in highly regulated industries such as finance, electricity, or health care.

Ultimately, organizations are seeking to implement a single, reliable risk and compliance framework that unifies strategic and operational functions. This includes enterprise and security management, business continuity, and robust internal controls, all reinforced by a transparent internal audit management system.

Today, it almost goes without saying that these systems must include smart automation and simulation features to accelerate workflows and minimize human error. In this context, AI is frequently highlighted as a technology with vast untapped potential in governance, risk, and compliance, particularly for predictive risk and opportunity analysis and for streamlining risk processes. Yet, its full impact and future areas of application remain to be seen.

What is clear, however, is that by the end of 2026, GRC tools will no longer be evaluated merely by their ability to document risks and ensure compliance. Instead, they will be judged on how intelligently they automate and integrate governance, risk, and compliance processes across the enterprise.

5. AI Governance & Strategic Planning

In many ways, the advent of artificial intelligence has been a game changer for businesses both on a strategic level and in day-to-day operations. Yet, as with most disruptive technologies, its rise comes with considerable risks, which is why AI governance is emerging as a discipline in its own right. More and more organizations recognize the need for clear policies, ethical guidelines, and oversight mechanisms to ensure AI is deployed responsibly and in line with regulatory as well as societal expectations.

This involves defining boundaries for the use of sensitive data, establishing strong monitoring systems to detect bias or unintended outcomes, and ensuring clear accountability whenever AI-driven decisions affect stakeholders. In 2026, regulators worldwide – and especially in Europe – are expected to intensify their scrutiny of AI practices, making governance an indispensable component of GRC.

At the same time, AI-driven features are transforming existing software at record speed. Predictive analytics, intelligent automation, and natural language interaction are no longer futuristic concepts but everyday business tools. This shift is particularly powerful when it comes to strategically aligning long-term objectives with operational execution. Modern software that allows strategy performance and goal management has surpassed its previous function of static performance reporting and now enables dynamic, data-driven strategy execution. With smart automation, organizations can henceforth link objectives, risks, and controls in real time, ensuring their strategies remain resilient amid rapidly changing external conditions – a trend set to accelerate in 2026.

Still, it’s important to recognize that AI won’t replace human GRC strategists. While it enhances efficiency and supports scenario modeling and validation, lasting success will come from combining human judgment with intelligent automation to craft strategies that are both visionary and adaptable.